A revised Tax and Regulation Manifesto is being launched today by the Association of Fleet Professionals (AFP) ahead of the Spring Budget on March 15.
The first edition of the document was created almost two years ago and the new version has been expanded from 13 to 21 points. Key items added include greater support for electric vans, the introduction of a chargepoint regulator, alignment of public charging VAT with home charging at 5%, tax breaks for hydrogen use and the support of community charging projects to encourage local charger installation.
Paul Hollick, AFP chair, said: “As a campaigning industry body, the Tax and Regulation Manifesto represents the AFP’s core thinking. It is designed to focus on practical ideas, ranging from quite small detail alterations to major strategic shifts, around which we believe that change or definition is required to enable businesses to move forward with their fleet and mobility plans faster and more effectively.
“Our 2021 Tax Manifesto was successful in that our number one request – to provide more information about future benefit-in-kind taxation – was achieved last year almost exactly in line with our thinking. We believe this very much shows that the government is listening to the fleet sector and we are hopeful that some of the ideas that we suggest here will ultimately be adopted.”
Paul said that the manifesto was the result of several months of work by the AFP’s Future Mobility Steering Committee.
“We’ve been having wide-ranging discussions with our members and other interested parties about developing our original ideas in areas where we believe that the taxation of fleets and mobility needs changing or developing in order to create effective incentives, greater certainty and more fairness.
“Of the 21 points we suggest, several could be implemented quite easily, almost at the stroke of a pen. Others, such as the need for discussions around a road tolling plan, are very much strategic and part of longer-term shifts in policy.
“The results, which we believe are constructive, realistic and thought-provoking, are contained in this document. We’re releasing the manifesto now, just ahead of the Spring Budget, because this is when discussion around policy and fiscal measures affecting fleets are at their peak. We want the document to spark as much discussion as possible.”
The manifesto can be downloaded at https://www.theafp.co.uk/wp-content/uploads/2023/02/Tax-Manifesto-2023-6.pdf and its 21 points are:
- Clean Air Zones should be co-ordinated nationally
- The “available to use” rule needs updating
- A clear definition of occasional private use for cars is required
- Home working definition and concessions should be extended
- Road tolling needs to be clearly signposted
- Parking costs should be linked to shared mobility and public transport solutions
- Inner city parking needs to be improved.
- Tax breaks are needed for employees taking a mobility solution…
- …and for shared and low carbon mobility
- … and for hydrogen
- Clear signposting of EV initiatives is required
- More support for electric vans
- A national kerbside charging strategy is essential
- Move public charging VAT to 5%, in line with home charging
- … and VAT should be removed from home charger installation costs
- The isolator issue on home charger installations needs to be resolved
- Easy access to get charge points fitted
- Chargepoint regulation
- Review of the AER
- Actual Cost definition for electric vehicle charging reimbursements
- Community charging projects
Paul continued: “Most of these points are directly related to the changing shape of the fleet and mobility sectors, specifically the practical issues that we are encountering when it comes to car and van electrification. While we appreciate that the government has achieved much in this area, there remains a lot more to be done, especially when it comes to light commercial electric vehicles.
“What we hope to see now is that the manifesto will be considered by the fleet and mobility sectors and to hear the reaction from all parties who have an interest. It is by no means a fixed document and we are very much open to further ideas and refinements.”